Tag Archives: position size

Chartists and Trend-followers Need to Trade More Frequently Than Most Quants

Besides the fact that chart patterns are mostly random formations (see head and shoulders, double bottoms, triangles, flags, etc.), chartists also face some practical problems having to do with position size.  Trend-followers also have similar problems. This is because position … Continue reading

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Price Action Lab Premium ETF Trading Performance for 2014

The ETF short-term trading system was started on September 2, 2014 and achieved a net absolute return of 7.6% for the year with a total return for SPY in the same period of 4.9%. The performance was based on a fixed percent … Continue reading

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Optimal Position Size Methods and Other Misconceptions

Optimality usually refers to a solution to a problem derived with respect to some objective function. A solution that is optimal with respect to a given objective function can be non-optimal with respect to another objective function. In trading, for example,  there is the well-known %Kelly method for calculating position … Continue reading

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